'More action' needed on quantitative easing
Further action may be needed from the Monetary Policy Committee (MPC) on the issue of quantitative easing, it has been suggested.
Yesterday (December 10th), the MPC announced it is keeping the size of its asset purchasing scheme unchanged at £200 billion and also maintaining the interest rate at 0.5 per cent.
The body said it will not be addressing the issue of quantitative easing again until February’s Inflation Report, but economic adviser at Deloitte Roger Bootle said that it has ’left the door open’ for more changes to be made.
’I therefore think that more support for the economy might yet be needed,’ he remarked, stating that the Bank of England ’may be forced’ to either make further alterations to its asset purchase scheme, calling for ’even more’ to be spent in this area.
He also said that the Bank should consider reducing the base rate to zero, a move that could affect
charity bank accounts.
The MPC’s latest statement means interest rates have remained at 0.5 per cent since March 2009.
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